2024-01-23 01:07:35
The meeting emphasized the need to further improve the basic system of the capital market, pay more attention to the dynamic balance of investment and financing, vigorously improve the quality and investment value of listed companies, increase the entry of medium and long-term funds into the market, and enhance the inherent stability of the market. It is necessary to strengthen capital market supervision, have “zero tolerance” for violations of laws and regulations, and create a standardized and transparent market environment. We must take more powerful and effective measures to stabilize the market and confidence. It is necessary to enhance the consistency of macro policy orientations, strengthen innovation and coordination of policy tools, consolidate and enhance the positive economic recovery, and promote the stable and healthy development of the capital market.
The State Council executive meeting held on January 22 heard a report on the operation of the capital market and work considerations. In this regard, industry experts said that this State Council meeting was the first time for the new government to specifically listen to reports on the operation of the capital market and make clear arrangements, which fully reflects the great significance of maintaining capital market stability for overall economic and social stability. In response to the current market situation, there were many positive statements at this meeting, which means that more hard and practical measures will be launched, and the policy effects are expected to gradually appear, and market confidence will continue to be enhanced.
Increase the entry of medium and long-term funds into the market
The meeting emphasized the need to further improve the basic system of the capital market, pay more attention to the dynamic balance of investment and financing, vigorously improve the quality and investment value of listed companies, increase the entry of medium and long-term funds into the market, and enhance the inherent stability of the market.
Chen Hongbin, chief economist of Pengyang Fund, said that increasing the entry of medium and long-term funds into the market will help improve investors’ long-term returns, promote a virtuous cycle between the capital market, the real economy, and residents’ wealth, and increase market stability and risk resistance.
He believes that on the one hand, we can increase the proportion of insurance equity investment, encourage the development of equity funds, and promote the entry of pension funds, social security funds and corporate annuities into the market; on the other hand, we must continuously optimize the capital market ecology, enhance the attractiveness of the capital market, and guide funds stay.
Gao Ruidong, Chief Economist and Director of the Research Institute of Everbright Securities, believes that medium- and long-term funds bring long-term stable funding sources to the capital market and help guide the market to transform into value investments, especially when the market experiences irrational and violent fluctuations. , playing its role as a “ballast stone” to stabilize investor confidence. At the same time, under the background that real estate has returned to its residential nature and interest rates have been declining for a long time, medium and long-term funds represented by pensions have further increased investment in equity assets, which is also an important way to diversify residents’ asset allocation and allow residents to jointly enjoy the dividends of economic growth.
He said that to promote the entry of medium and long-term funds into the market, on the one hand, we must continue to optimize the policy environment and improve institutional arrangements such as performance evaluation, assessment mechanisms, and restraint mechanisms for medium- and long-term funds to increase the proportion of equity investment, so as to adapt to the role of medium- and long-term funds in reducing risks and stabilizing returns. dual pursuit; on the other hand, we must continue to strengthen the full-chain supervision of listed companies and encourage listed companies to increase their income distribution to long-term investors, thereby attracting more medium and long-term funds to enter the market.
Data shows that as of the end of 2023, various professional institutional investors such as social security funds, public funds, insurance funds, annuity funds, etc. hold a total of A-shares with a circulating market value of 15.9 trillion yuan, an increase of more than 100% from the beginning of 2019, and the proportion of shareholdings has increased from The increase from 17% to 23% has become an important force in promoting the stable and healthy development of the capital market.
A reporter from the Shanghai Securities News learned that in the next step, the China Securities Regulatory Commission will further establish the investor-centered market development concept, further deepen reforms, make greater efforts to introduce medium and long-term funds, promote the coordinated development of investment and financing, and continue to enhance the attractiveness of the capital market. and long-term investor returns.
More powerful and effective measures should be taken
The meeting proposed the need to strengthen capital market supervision, have “zero tolerance” for violations of laws and regulations, and create a standardized and transparent market environment. We must take more powerful and effective measures to stabilize the market and confidence.
In this regard, industry experts said that this meeting emphasized the need to take more powerful and effective measures to stabilize the market and stabilize confidence, indicating that more hard and practical measures will be launched, and the policy effects will gradually appear.
Tian Lihui, dean of the Institute of Financial Development at Nankai University, said that under the current domestic and international economic situation, the capital market is highly volatile and uncertain, and investor confidence is easily affected, and more effective measures need to be taken to stabilize market expectations and stabilize confidence. . Specifically, we will further optimize and standardize primary market pricing, severely crack down on market manipulation and insider trading, strengthen information disclosure and guidance, increase government concern and policy support, and strengthen the synergy of favorable policies, etc.
According to Zhang Jun, chief economist of Galaxy Securities, short-term market fluctuations are greatly affected by investor sentiment. The current stock market valuation is already low, and long-term investment is cost-effective. It can vigorously promote the entry of medium and long-term funds into the market to reduce market volatility. In the future, more vigorous growth-stabilizing policies will need to be implemented to promote an expected recovery in economic growth and improve stock market fundamentals, thereby enhancing investor confidence.
It is necessary to enhance the consistency of macro policy orientations
The meeting also proposed that we should enhance the consistency of macro policy orientations, strengthen innovation and coordination of policy tools, consolidate and enhance the positive economic recovery, and promote the stable and healthy development of the capital market.
Industry experts believe that this reflects the insistence on the idea of a game of economics and finance. The operation of the capital market is a mirror reflection of changes in fundamentals, policies, funds, emotions and the external environment; when looking at capital market issues, we must adhere to systemic thinking and look beyond the capital market. Promoting the stable and healthy development of the capital market requires coordinated efforts from macro management departments, financial management departments, local governments and other parties to actively create a good macro environment for the development of the capital market.
Chen Hongbin believes that “enhancing the consistency of macro policy orientations” will help save policy space, improve the efficiency of macro policy transmission, and help solve possible coordination failures from the policy end to the capital market end.
Tian Lihui said that “enhancing the consistency of macro policy orientation” means that when formulating and implementing macro policies, it is necessary to maintain the consistency of policy objectives and measures, policies of different departments need to be coordinated, and multiple policy tools need to work together to avoid policy conflicts or Only in this way can we better improve the effectiveness of policies, stabilize economic recovery and promote the steady development of the capital market.
Specifically, when formulating macro policies, it is necessary to clarify policy objectives and ensure that each policy measure is consistent with the overall goal; when formulating and implementing macro policies, it is necessary to strengthen the coordination and cooperation of various policy measures to avoid conflicts between policy measures. conflicts or overlaps; when implementing macro policies, it is necessary to maintain the consistency of policy implementation and avoid policy swings. In the future, as policy tools continue to strengthen innovation and coordination, the economic recovery will continue to consolidate and strengthen, and the capital market is expected to achieve stable and healthy development.
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